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Hain in threat to City bonuses

PETER HAIN, who is bidding to become Labour’s next deputy leader, has threatened government curbs on “grotesque” City bonuses, writes Isabel Oakeshott.

He is warning that unless Britain’s business community shows more restraint in the pay and perks of top executives, the government should intervene to regulate them.

His comments are certain to alarm City bankers and businessmen whose bonuses are expected to rise by 18% this Christmas to £8.8 billion.

It is the first time a cabinet minister has suggested that the state intervene to limit the annual payouts.

Critics will accuse Hain, the Northern Ireland secretary, of reviving “class war” as he attempts to succeed John Prescott as the party’s deputy leader.

Hain said: “I do think most people find it pretty grotesque that a couple of dozen City executives can share a billion pounds of bonuses between them. That’s not where hard-working families and people are at.